Coastal Association of REALTORS®, (CAR) Berlin MD
“Coastal Association of REALTORS® received the announcement that National Association of REALTORS® (NAR) and the plaintiffs had reached a proposed settlement agreement Friday March 15th, from NAR interim CEO Nykia Wright. This settlement would end litigation of the claims brought on behalf of home sellers related to broker commissions.”, reported Bernie Flax, CEO at CAR.
Wright gave this comment “NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers. It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals.”
There are strong grounds for the court to approve this settlement, but we can expect the court review process to take several months or more. In large class action settlements, objections and opt outs are common, and the plaintiffs and NAR will handle them as they come.
Chris Jett, CAR® member and Maryland REALTORS®, State Treasurer stated, “It’s important to note that the settlement is still subject to final court approval, so no immediate changes are being implemented in the state or within our industry. REALTORS® will continue to clearly educate and document in writing to both Buyers and Sellers what our services are and the value we bring to the table.”
One of the main terms in the proposed settlement is that all buyer’s agents will utilize written buyer agency agreements. The good news for Maryland REALTORS® is that Maryland law has required the use of written buyer brokerage agreements since October 1, 2016. Maryland is one of only seventeen states that currently have this agreement in place with their consumers.
“Maryland law required licensees to change from the previous industry practice of Presumed Buyer Agency to requiring written Buyer Agency Agreements years ago. Our membership is well prepared for this settlement term because we already provide this high level of transparency and professionalism to buyer clients in Maryland.” commented Lauren Bunting, CAR® 2024 President Elect.
The settlement makes clear that NAR continues to deny any wrongdoing in connection with the Multiple Listing Service (MLS) cooperative compensation model rule (MLS Model Rule). NAR has long maintained that cooperative compensation and NAR’s current policies are good things that benefit buyers and sellers. They promote access to property ownership, particularly for lower- and middle-income buyers who can have a difficult-enough time saving for a down payment.
Brigit Taylor, our 2024 CAR President remarked, “In real estate, there will always be two sides to each transaction. CAR, NAR, and Maryland REALTORS® stand behind the need for both the Seller and the Buyer to be represented by a professional who knows their market, the communities, how to get a home ready for sale, and how to prepare each party on the process of a home sale or purchase.”
With this settlement, the fact is that compensation to either Buyer or Seller brokerage in Maryland has not changed, compensation has always been and continues to be negotiable through discussion based on services provided between the parties. Coastal Association of REALTORS® is confident our REALTOR® members and the Buyers and Sellers they serve will continue to reach the common goal of achieving the American Dream of Homeownership for everyone.
For more information about CAR, call 410-641-4409 or visit www.coastalrealtors.org.
More about Coastal Association of REALTORS®
The Coastal Association of REALTORS® is fortunate enough to represent over 1,000 real estate professionals in Somerset, Wicomico, and Worcester Counties. Our members are engaged, informed, and active in their communities. Our charitable foundation grants support the good work of our local agents and their charities. We are proud partners with Junior Achievement of the Eastern Shore promoting financial literacy to students on the Eastern Shore. We support and educate consumers on the American dream of homeownership, as well as the purchase and use of all types of real property.
WE are Local. WE are accurate. WE are trusted. WE are REALTORS® and affiliate members.
For more information on Coastal, visit www.coastalrealtors.org. The term REALTOR® is a registered collective membership mark unique to real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS® and subscribe to its strict Code of Ethics.
MEDIA CONTACT: Bernie Flax / 410-641-4409 / bernie@coastalrealtors.org
